It seems that NFC mobile payments have not been as quick to progress in Europe as expected, despite a multitude of partnerships spreading in the continent in 2011. Many of the partnerships of that year have been dissolved, or have struggled to launch. According to Gartner Research, progress is still very slow and NFC smartphone penetration remains low.
However, NXP – a Netherlands-based semiconductor supplier – has announced a growth in its sales of NFC chip technology. The company registered a 30% growth, placing its NFC revenue at around $65 million. This news is accompanied by the increased number of NFC mobile partnerships in Europe in 2012 and the success of schemes like Cityzi in France. In June, Citizy announced that the number of NFC smartphones sold in France has reached the one million mark and decided to extend the project to several more cities. The UK also saw the country-wide adoption of NFC payments through McDonald’s, Marks & Spencer’s and the recently approved “Project Oscar” is set to become a milestone for NFC mobile payments in the country, when it launches.
Nonetheless, many difficulties remain, many of them regulatory – the delay in “Project Oscar’s” approval is proof. Moreover, NFC monile payments are costly, for both retailers and consumers. While a government-sponsored initiative like Cityzi in France is not feasible everywhere, the widespread use of the payment technology in the European continent requires a concerted effort between mobile networks, smartphone manufacturers, retailers and governments to really take off.
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